Robust first half growth

23 July 2014

Ymagis (ISIN: FR0011471291, mnemonic: MAGIS), the specialist in digital technologies for the film industry, today reported its consolidated sales as of 30 June 2014.

The company generated revenue of €30.0m for the first six months of 2014, i.e. a 49.9% increase year-on-year.

That said, it should be emphasized that the end of the VPF roll-out has had specific base effects:

  • As a reminder, revenue for the first quarter of 2014, up 101.5%, included equipment sales that concerned the end of the VPF roll-out in Spain and Germany in the amount of €7.4m. Stripping out this item, first quarter revenue increased by 24.1%.
  • In the second quarter of 2014, total consolidated revenue amounted to €12.0m, an 8.0% increase yearon-year. In the second quarter of 2013, the Group had recorded €1.1m of equipment sales related to the VPF roll-out. Stripping out this item, second quarter revenue increased by 19.0%.
  • For the first half of 2014, revenue growth excluding equipment sales related to the VPF roll-out therefore comes in at 21.4%.

REVENUE BREAKDOWN BY LINE OF BUSINESS

Robust first half growth

VPF (1): confirmed growth

The VPF business recorded an 18.9% increase in second quarter revenue to €7.6m. For the first half of 2014, VPF revenue was up 16.7% to €14.9m. This performance is attributable to the sharp increase in the number of screens under VPF contract with the Group in 2013.

Services: continued ramping up of Digital Lab activity

Excluding Equipment sales and installations, all the other Services activities achieved strong growth in the second quarter and in the first six months of 2014.

Revenue for the Equipment sales and installations business is set to taper gradually in the second half of 2014 due to the end of equipment sales related to VPF, of which the roll-out ended as of 1 January 2014. In this context, this activity's revenue declined by 54.2% to €1.1m in the second quarter.

The Digital Lab activity recorded an increase of 57.1% to €2.2m in the second quarter and a growth of 77.4% to €3.9m for the first six months of 2014. The second quarter notably benefited from:

  • the contribution from Smartjog Ymagis Logistics, fully integrated in Ymagis' consolidated accounts as from 1 December 2013;
  • the contribution as from 1 April 2014 of the connected cinema network acquired from Arqiva in April;
  • in Spain, the ramping up of the Barcelona digital lab (opened in July 2013), which benefits the postproduction business as well as the duplication and delivery of digital content.

As at 30 June 2014, Ymagis had delivered close to 32,300 DCP (2) films and more than 154,600 DCP (2) trailers and commercials throughout Europe, i.e. respective increases of 90% and 223% compared with the first half of 2013, and has an installed base of more than 2,500 connected cinemas in Europe including since April the network acquired from Arqiva.

The On line support and maintenance activity was up 17.0% to €0.9m in the second quarter and 21.1% to €1.9m in the first half, driven by the increase in the number of VPF screens rolled out and the recurrence of this type of service provided to cinema exhibitors having acquired projection equipment from Ymagis.

All in all, the Services business was down 9.2% in the second quarter but recorded growth of 106.2% in the first half. Excluding equipment sales related to the VPF roll-out, the Services business achieved revenue growth of 29.1% in the first half and of 15.1% in the second quarter.

Outlook: creation of the European leader in digital technologies for the film industry

Over and above continued business growth, priority will be given in the months ahead to integrating dcinex. With the acquisition of this company, announced last Monday, Ymagis will become the European leader in its industry.